Beth:
Hi, I’m Beth with TB Properties Buys Land. This week I want to discuss with you scams and scam offers. The reason I’m bringing this up is that we’re working with a really nice couple up in Washington State right now who were concerned about this. Tim had worked with the wife originally and they came to agreement so then it was time for me to send the purchase agreement over to them for review and signatures. After emailing a copy of the agreement, I spoke with the wife on the phone and she said that she was really concerned because she’s received a lot of scam offers and she wanted to make sure that this was legit and that we weren’t a company that was going to try to steal the title of their land away from them without them getting paid for it. With this, we had a nice long conversation and I discussed with her the reason why TB Properties Buys Land always closes through a title company.
One of the most important reasons for closing through a Title Company is that there’s protection on both sides. Just as when you are buying or selling your home, you always close with a title company. The Title Company prepares the paperwork; that contract goes to them first, they compile documentation to provide a title commitment that they give to the buyer, which will reveal and possible red flags for that particular property. The title commitment also tells a seller anything that they need do in order to clear the chain of title so that they can sell the property.
Now, what this also means is that we as the buyer are not paying you directly as the seller. There is a third party intermediary, and that’s the title company. Part of this process is that the title company requires that the buyer pay with certified funds. That means that we can only pay with a bank check or a wire transfer so they know that those funds are there, they’re certified or verified, however you want to call it. Once the title company has those funds, it’s been deposited and they know they’re there in that account, only then will they give that to the seller. With a process like this in place, we’re not worried that you’re going to run off with our money and you’re not worried that we’re going to run off with your title and not having paid you. So once paperwork is signed on both sides and we both enter into this agreement knowing all the information, then we pay and then you get paid.
Back to this transaction: I was talking to this very nice lady and as I was walking her through the process I told her, “Listen, once we sign that agreement, we copy you on the information to the title company and the title company will reach out to you directly with a file number.” They call that an escrow number or a file number. And I told her, “At any time, you are able to call that title company directly and ask them questions, such as how is this coming along? I have questions about this. I’d like to see my HUD statement. What is this number here? And what does this mean? What does the title commitment mean?” It is important that has a seller, you have every right, you have all the transparency to contact the title company and feel like you’re in control of the situation. If you don’t, you need to get out.
I know some other investment companies that do their own self-closing. The buyer does all the paperwork and they send a notary for you to sign in front of and during that time the notary gives you a check. In some cases, that may be safe, but in other cases, it may not be. As a seller, how do you know whether this method with that particular buyer will be safe or not? Unless you know them personally or are used to doing this and you know exactly how they’re working, it may not be a safe transaction. I know that when working through a title company, it’s going to be a safe transaction. It is not without its cost though. Closing through a Title Company most certainly costs us more money, especially since we pay both the buyer and the seller escrow fees. We also pay for title insurance on the property, not something included when someone “self-closes.” I know it costs us more money, but it makes you as a seller feel safer and it makes us feel safe too. Tim and I like to feel safe knowing that everything’s covered on that transaction. In sum, it’s all around better to close with title company and that’s why we do just that.
Back to the sweet but savvy lady in which we are buying her property. We sent the contract over there and she called the title company and she said, “Hey, I’m selling my land to Tim and Beth and I want to know if you have worked with them before? They said that you have.” She was able to talk to them and feel secure that this was not our first time working with them and that we’d done many legitimate transactions with them before so she felt better. With that, they signed the contract. The contract is now in escrow awaiting a title commitment and should everything work out as planned, we’ll close in a couple weeks. They’ll have their money and we’ll have our property.
In close, if you have any questions about some of these offer letters, whether you received one from TB Properties Buys Land or another investment company, feel free to reach out to us. We’re happy to work with you. If we haven’t worked in your area before, we may not have a history with any area title companies there. However, we can give you references to other title companies if you’re interested in checking with them. We also have references on our website as well. We look forward to working with you. TB Properties Buys Land purchases rural vacant land across the country, generally 10 plus acres, but if you have any questions, reach out to us and we’re happy to help. Thanks again.